CIT COMMERCIAL SERVICES ACQUIRES U.S. FACTORING ASSETS OF HSBC BANK USA

Livingston, NJ - December 31, 2003 - CIT Group Inc. (NYSE: CIT) announced today that its Commercial Services business unit has acquired substantially all of the U.S. factoring assets and liabilities of HSBC Bank USA. The acquired assets approximate $1 billion before assumed liabilities with net assets acquired of approximately $270 million. Terms of the deal were not disclosed.

“This transaction reflects CIT’s corporate strategy to pursue growth opportunities that are synergistic with our core business lines and meet our return on equity targets,” said Jeffrey M. Peek, President and COO of CIT Group Inc. 

“HSBC’s decision to exit the domestic factoring business was made as a result of our new strategic plan’s emphasis on our core U.S. businesses,” said Martin Glynn, President & CEO of HSBC Bank USA.  “We were very pleased to be able to reach agreement with CIT, as their proven expertise as a leading provider in the industry is widely acknowledged.” HSBC Securities (Canada) Inc. advised HSBC Bank USA on this transaction.

CIT’s Commercial Services business has been providing accounts receivable and inventory financing solutions to commercial businesses since the 1920s. “This addition to our existing portfolio reinforces CIT’s commitment to the various industries that sell into retail channels of distribution,” added John Daly, President, CIT Commercial Services.

About CIT Commercial Services

CIT Commercial Services is a unit of CIT Group Inc. and is one of the United States’ leading providers of factoring, accounts receivable management, credit protection, and lending services.  Commercial Services specializes in serving the apparel, footwear, furniture, home furnishings, consumer electronics and other industries that sell into retail channels of distribution.  CIT Commercial Services is headquartered in New York City and has offices in Charlotte, Dallas, Los Angeles, Danville, VA; Hong Kong and Shanghai.